On November 18, 1861, Jefferson Davis issued a report to the Confederate Congress on the progress of the War.  It is a fascinating document.  It details how he perceived the War at this early stage.  Here is the text of the report, interspersed with comments by me:

Richmond November 18th 1861

The few weeks which have elapsed since your adjournment have brought  us so near the close of the year that we are now able to sum up its  general results. The retrospect is such as should fill the hearts of our people with gratitude to Providence for His kind interposition in their behalf. Abundant yields have rewarded the labor of the agriculturist,  whilst the manufacturing industry of the Confederate States was never so prosperous as now. The necessities of the times have called into  existence new branches of manufactures, and given a fresh impulse to the activity of those heretofore in operation. The means of the Confederate States for manufacturing the necessaries and comforts of life within  themselves increase as the conflict continues, and we are gradually  becoming independent of the rest of the world for the supply of such  military stores and munitions as are indispensable for war. The  operations of the army soon to be partially interrupted by the  approaching winter have afforded a protection to the country, and shed a lustre upon its arms through the trying vicissitudes of more than one  arduous campaign, which entitle our brave volunteers to our praise and  our gratitude.

The Confederacy would expand its industrial plant enormously during the War, but it could never compete with the industrial might of the Union.  The crop of 1861 was indeed bountiful, and it did small good for the Confederacy since Davis had decided on an informal cotton embargo which it was assumed would convince Great Britain to recognize the Confederacy since the British textile industry relied upon cotton from the South.  It was a ghastly mistake.  With the Union blockade in its infancy, most of the cotton crop of 1861 could have been shipped to Europe and earned much-needed hard currency for the purchase of badly needed supplies and weapons.  Instead, what cotton was not used for domestic purposes in the Confederacy in 1861, simply sat in warehouses and on docks.  This policy was one of the main blunders of the Davis administration in 1861. Continue reading →